Purpose of Planning

The ultimate purpose of planning is to build a model that enables you to predict
which activities and resources are critical to the timely completion of the project.
Strategies may then be implemented to ensure that these activities and resources
are managed properly, thus ensuring that the project will be delivered both On
Time and Within Budget.

Planning aims to:

• Identify the total scope of the project and plan to deliver it,
• Evaluate different project delivery methods,
• Identify Products/Deliverables required to deliver a project under a logical
breakdown of the project,
• Identify and optimize the use of resources and evaluate if target dates may be
met,
• Identify risks, plan to minimize them and set priorities,
• Provide a baseline plan against which progress is measured,
• Assist in stakeholders’ communication, identifying what is to be done, when and
by whom and
• Assist management to think ahead and make informed decisions.

Planning helps to avoid or assist in evaluating:

• Increased project costs or reduction in scope and/or quality,
• Additional changeover and/or operation costs,
• Extensions of time claims against your customer or client,
• Loss of your client’s revenue,
• Contractual disputes and associated resolution costs,
• The loss of reputation of those involved in a project, and
• Loss of a facility or asset in the event of a total project failure.
1.4 Project Planning Metrics
The components that are normally measured and controlled using planning and
scheduling software:
• Scope
• Time
• Resource Effort/Work (these are called Units in Primavera P6)
• Cost
A change in any one of these components normally results in a change in one or
more of the others.
Other project management functions that are not traditionally managed with
planning and scheduling software but may have components reflected in the
schedule include:
• Document Management and Control,
• Quality Management,
• Contract Management,
• Issue Management,
• Risk Management,
• Industrial Relations, and
• Accounting.
The development of Enterprise Project Management systems has resulted in the
inclusion of many of these functions in project planning and scheduling software.
Primavera includes modules for:
• Issue Management,
• Risk Management, and
• Document Management.

1.5 Planning Cycle

The planning cycle is an integral part of managing a project. A software package
such as Primavera makes this activity much easier.
When the original plan is agreed to, the Baseline or Target is set. The Baseline
is a copy of the original plan and is used to compare progress of an updated
schedule. Earlier versions were limited 50 baselines but this restriction has been
removed in later versions.
After project planning has ended and project execution has begun, the actual
progress is monitored, recorded and compared to the Baseline dates.
The progress is then reported and evaluated against the Baseline.
The plan may be changed by adding or deleting activities and adjusting
Remaining Durations, Logic or Resources. A revised plan is then published as
progress continues. A revised Baseline may be set if the original Baseline
becomes irrelevant due to the impact of project scope changes, a change in
methodology or excessive delays.
Updating a schedule assists in the management of a project by recording and
displaying:
• Progress and the impact of project scope changes and delays as the project
progresses,
• The revised completion date and final forecast of costs for the project,
• Historical data that may be used to support extension of time claims and
dispute resolution, and
• Historical data that may be used in future projects of a similar nature.